I think it’s safe to say that as we enter peak silly season, the last thing anyone expected was a looming government shutdown in the US that could be because of Elon Musk. With Christmas just around the corner, people are hoping for a smooth holiday, not a political standoff that could disrupt essential services and impact millions of lives. So, what’s really going on here?
Why is the US government at risk of shutting down?
The US government is facing a shutdown because lawmakers in Congress are struggling to agree on how to fund it. Essentially, the government needs money to keep operating, and if it doesn’t receive this funding by midnight on Friday, it will have to halt many of its functions. This situation arises from a failure to pass a budget or a temporary funding bill.
Recently, there was an attempt to create a bipartisan agreement that would extend government funding until March. However, this plan fell apart when Donald Trump and Elon Musk voiced their objections. Trump criticised the proposed funding plan, calling it “unacceptable” and a “Democrat trap”, per Yahoo News.
Meanwhile, Musk took to social media on Wednesday (local time), urging people to “stop the steal of your tax dollars”. He posted more than 100 times on X about stopping the bill. “Kill The Bill” can be found all over his feed.
Their comments influenced many Republican lawmakers, causing them to withdraw their support for the funding plan. Now, with the deadline looming, Congress is in a rush to find a solution. If they can’t reach an agreement soon, essential government services will come to a halt until they do.
What happens if the US government shuts down?
If the shutdown goes ahead, several key consequences will unfold:
- Federal Employees: Thousands of government workers will be furloughed, meaning they won’t report to work and won’t receive pay until the shutdown ends. Essential workers, like air traffic controllers and law enforcement officials, will continue working but won’t be paid during the shutdown.
- Public Services: National parks may close or operate with limited services. Passport processing could also stop, causing delays for those needing travel documents.
- Economic Impact: A prolonged shutdown could disrupt economic activity just as the holiday season kicks into high gear. Delays in processing Medicare and Medicaid claims could also occur, affecting many Americans who rely on these services.
How does a US Government shutdown affect Australia?
While this situation mainly affects the US, it can also have some ripple effects here in Australia. For instance, if you’re planning to travel to the US, be prepared for potential delays at airports due to staffing shortages among security personnel.
A downturn in the US economy could impact global markets, including Australia’s. This might affect exchange rates and investment decisions. Plus, uncertainty around a government shutdown can lead to volatility in financial markets worldwide, which could influence Australian businesses.
Is there still anything that can be done to avoid the US government shut down?
There’s still hope for a last-minute resolution. Lawmakers are eager to avoid being blamed for shutting down essential services right before Christmas. Speaker Mike Johnson mentioned that they’re expecting votes soon and hinted at having a plan in place.
However, both chambers of Congress need to agree on any new measure, so time is running out.
In a last-minute turn of events, the Republican-controlled House passed a short-term bill on Friday evening to avoid a government shutdown. The vote was pretty decisive, with 366 in favor and only 34 against. All the opposition came from Republicans, which shows there’s still some division within the party.
This bill is now headed to the Senate, which needs to pass it before 12:01 am. to officially prevent a shutdown. If it passes, it’ll keep the government running and ensure that U.S. troops, border patrol agents, air traffic controllers, and millions of other federal workers won’t have to work without pay during the holidays. For now we’ll just have to wait and see!
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